2degrees posts net loss of NZD78.6 million in 2010; reshuffles shareholding

30 Jun 2011

According to New Zealand’s National Business Review, 2degrees – the country’s third largest cellco in terms of subscribers – made a net loss of NZD78.6 million (USD64.2 million) during the twelve months ending 31 December 2010. Citing documents filed with the government’s Companies Office, the NBR reports that the mobile operator posted revenues of NZD107.6 million for the same period. In 2degrees’ only other filing – for the nine months ended 31 December 2009 – the company posted a loss of NZD51.8 million on revenue of NZD27 million. According to local press reports, 2degrees has previously indicated that it does not expect to move out of the red until 2012.

The National Business Review also reports that 2degrees has ‘reshuffled’ its shareholding over the course of the past year. Seattle-based Trilogy International Partners, which has a handful of investments in telecoms companies around the world, has increased its majority control to 58%; in February 2010 Trilogy gained Overseas Investment Office approval to take 100% control of 2degrees should the circumstances arise. Meanwhile, the Hautaki Trust, which originally brought government-discounted frequencies to the company as part of the Maori Spectrum Trust, saw its holding reduced from 13% to 10%. Hong Kong-based investment vehicle KLR Holdings, which is owned by 2degrees founder Tex Edwards, reduced its minor shareholding to 1.15%. Finally, Amsterdam based Tresbit now holds a 28.5% stake in 2degrees, after taking on the interest formerly held by UK-based CVP. 2degrees listed the total value of its shares at NZD330 million at 31 December 2010, up from NZD244 million year-on-year.

New Zealand, Two Degrees Mobile (2degrees)